Chesapeake's embattled CEO to retire

Chesapeake announced late Tuesday that company founder Aubrey McClendon will retire as chief executive office on April 1. McClendon stepped down as the company’s chairman last year following questions about his business dealings.

McClendon will step down as chief executive officer even though Chesapeake says a review of his business dealings has not revealed improper conduct.

Plans are for McClendon to continue as chief executive until a successor is appointed. In a statement, McClendon acknowledged that he had philosophical differences with Chesapeake’s new board, but said he looked forward to working with them to provide a smooth transition.

Chesapeake Chairman Archie Dunham said in a statement the company needs a new leader to help develop the oil and gas assets the company has amassed under McClendon.

McClendon, 53, founded the company 24 years ago and pushed it to acquire drilling rights to huge amounts of land. The company focused on developing deep shale formations, using horizontal drilling and hydraulic fracturing to extract oil and gas.

Pursuit of shale drilling opportunities drew Chesapeake to eastern Ohio in 2010 as the company explored the Utica shale formation.

McClendon’s strategy led Chesapeake to promising assets — and enormous debt. A plan that allowed McClendon to invest personally in the company’s wells came under renewed scrutiny last year. He was forced to step aside as board chairman.

But the issue never slowed Chesapeake’s efforts with the Utica shale.

The company has spent $3.3 billion to amass mineral rights to more than 1 million acres of the Utica shale. Chesapeake has been the leading developer in eastern Ohio with more than 300 permits to drill horizontal wells and more than 30 already producing.

Carroll County has been the focal point of Chesapeake’s drilling operations, while Stark County has served as its base in Ohio. The company has broken ground for a regional headquarters on 291 acres in Louisville. The company has more than 550 employees working throughout Ohio.